Income tax relief for deployed members

Income tax relief for deployed members

As part of Canada’s new defence policy, Strong, Secure, Engaged, the Government of Canada announced an enhanced income tax relief measure for all Canadian Armed Forces (CAF) personnel who deploy on named, international missions.

I am happy to advise that all arrangements are now in place to make this initiative a reality for members of the CAF on these named missions.

What this means in practical terms is that soon you will no longer have to pay income tax while deployed on named international operations. 

Here’s how it will work: 
CAF members who deployed outside of Canada on a named international operational mission since Jan. 1, 2017, are eligible for income tax relief.  This means they will be refunded the income tax they paid during the period of their deployment via their 2017 income tax submission to CRA. 

For those deploying after Jan. 1, 2018, the military pay system will automatically calculate the income tax to be withheld (if any).

Importantly, this new measure de-links tax relief from risk levels, and raises the eligible deduction from income up to and including the maximum pay incentive level of Lieutenant Colonel (General Specification Officers – GSO).

For those on missions in 2017 already eligible for tax relief, this change in pay incentive levels will also be captured through your 2017 tax return.

Commander MILPERSCOM will soon be issuing a CANFORGEN to provide further technical details, and in the coming days, your respective chains of command will communicate more information on how these tax relief measures apply specifically to you.

Below you will find a list of frequently asked questions – should you need further clarification.

Thank you for the incredible work you do on these important operations across the globe.

General Jonathan H. Vance
Chief of the Defence Staff

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